Here we gathered the most interesting of common myths about trading on Forex.
Financial expert shares his experience with Forex and gives advice for beginners
Financial expert, Forex analyst and mentor Mr Reza Aswin works as an independent consultant and also provides financial analytics for FBS. He agreed to give an interview for our blog and share a few tips with our traders.
For how long have you been analyzing the Forex market?
I started following Forex news professionally in 2005 and to this day still keep my hand on the pulse of this huge market and other financial fields.
Are you a trader yourself?
Yes, I trade in my spare time and also do financial consulting for several large companies engaged in fields such as currency and futures, also, food and beverages.
For me, trading is a business, and like any other business it requires calculation, consideration, analysis, strategy and careful planning before doing transactions on the market.
Some people only use BUY and SELL options, when in fact they should take a moment to think and use the wait & see option. This is a general rule for my trading. I don’t trade every day, instead I wait for the right moment. There is always a viable opportunity that will bring greater profit compared to the possible risks I might face if the market moves not in line with my expectations.
When I was a beginner, like many traders I couldn’t even sleep without making 3-6 trades a day, even though the results were rarely good. I knew that something had to change so I started learning and tried harder to find "The Secret Behind Forex Trading Success".
Finally, I developed a strategy that suits me well. It helps me consistently increase my profit and requires only 3 to 6 trades a week. This is a huge plus for me because I value my time.
Why did you become interested in Forex?
The Forex market is the largest market. It involves so many financial institutions, governments and global companies that it makes it almost impossible for a person or a particular organization to intervene or monopolize the market. Added with considerable high liquidity, and you have almost the best kind of business there is.
What is your advice for new traders?
My advice for beginner traders is to invest your time in studying before you invest your money. This can be applied to any kind of business, including Forex. Indeed many traders are not willing to spend their money on education but prefer to invest in Forex without understanding what it is and how to trade.
What difficulties did you have when you just started trading?
For me, it was hard at first to determine the underlying sentiment of an event in a global market or geopolitics. What is going to influence the market direction and which pair will be affected by an event or a policy. Another difficult part is an interpretation of the central bank's monetary policy which determines the direction of the big market.
What is considered a good initial investment when you’re just starting and learning how to trade?
Every business would want to employ the economic principle of “capital as small as possible, profit as big as possible”. This is obviously a good principle to follow for everyone, including Forex traders. If we are talking about beginners then we should start with the correct money management calculations. The best starting capital would be at least 30% of the contract size of pairs you trade(for example, $300 on micro accounts).
How about demo trading?
Demo trading is very handy when you want to get to know a broker. And it’s also a great tool if you want to try new methods or a strategy before you trade on a real account.
Do you have any hobby?
My hobbies are travelling and teaching.
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